Operations Management MCQs

What is the value of the improvement index for cell B1 shown in Table 10-1?
a. -50
b. +3
c. +2
d. +1

11.36 In a goal programming problem with two goals at the same priority level, all the deviational variables are equal to zero in the optimal solution. This means
a. there is no feasible solution to the problem.
b. all goals are fully achieved.
c. nonlinear programming must be used to solve this.
d. this problem was an integer programming problem.

An integer programming (maximization) problem was first solved as a linear programming problem, and the objective function value (profit) was $253.67. The two decision variables (X, Y) in the problem had values of X = 12.45 and Y = 32.75. If there is a single optimal solution, which of the following must be true for the optimal integer solution to this problem?
a. X = 12 Y = 32
b. X = 12 Y = 33
c. the objective function value must be less than $253.67
d. the objective function value will be greater than $253.67

A company must assign mechanics to each of four jobs. The time involved varies according to individual abilities. Table 10-2 shows how many minutes it takes each mechanic to perform each job. This was solved using the Hungarian method. Table 10-3 shows the solution.

1If the optimal solution will remain the same over only a small range of values for a particular coefficient in the objective function, then management will want to take special care to narrow this estimate down.
A) True.
B) False.
2A shadow price indicates how much the optimal value of the objective function w

25. The minimization of cost or maximization of profit is the
a. objective of a business
b. constraint of operationsmanagement
c. goal of management science
d. objective of linear programming
e. both a and d
26. Cully furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500

True or False: The probability of Type I error is referred to as the significance level of the test.
True
False
A Type II error is defined as:
rejecting a true null hypothesis.
rejecting a false null hypothesis.
failing to reject a true null hypothesis.
f

1. F. Marston, Inc. has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors is most likely to lead to an increase of the additional funds needed (AFN)?
a. A switch to a just-in-time inventory system and outsourcing production.
b. The company reduces it